Description
- yearly gross and net income
- banking, housing, transportation, savings, insurance, transportation, and leisure activities
- additional expenses you identify as ordinary and necessary that are not listed in the narrative
- identify fixed and variable expenses
- cited resources to just additional ordinary and necessary expenses you identified
***HINT: use local newspapers or online advertisements to justify your decisions
You have the following information:
- Mr. Brown is a city worker earning $16.54 per hour for a 40 hour week, 52 weeks per year. He also earns overtime at the standard overtime rate. This year he worked 500 hours overtime. He also earns a yearly bonus of $2000 for his satisfactory performance evaluation. What as his total combined income?
- Mrs. Brown is a social worker with a salary of $26000 per year. She also works 10 hours per week part-time on weekends at a retail store in the mall an hourly rate of $7.50 and a commission of 10% of sales. Her yearly sales were $25,000. What is her total combined income?
- Joe, their teenage son, works 20 hours per week part-time earning $6.50 per hour. Joe has a responsibility to pay for his own student class dues of $10 per semester, his own entertainment, and his own clothes and personal items. Create a projected budget for Joe that includes a detailed list of possible expenditures.
- Sandy, their pre-teen daughter, is too young to work, but receives and allowance of $10 per week for completing her chores at home. Create a typical budget for a pre-teen using her allowance as income.
- Their house mortgage payment is $992 monthly.
- Maintenance for the home averages $200 monthly.
- The family lives in an area with mass transportation available.
- Family medical insurance is available through Mr. Brown's employer for $150 per month. There are routine co-payments for each visit to the doctor. The Brown family was fortunate that no family member was ill, but each member of the family had a health check-up with a co-pay of $35.00 for each visit. Mr. Brown has a monthly prescription with a co-pay of $15.00.
- The family's income tax rate is 25%.
- Mrs. Brown's hourly rate (her part-time work) is put into savings, which earns 10 % interest compounded annually. How much will be in the account at the end of one year?
- The family owes $5000 on credit card accounts with an annual interest rate of 12%, which is 1% monthly. The required minimum monthly payment is $75.00. How long will it take to repay the balance if the minimum amount is paid? How much must they pay each month to pay off the balance in 5 years?
***Hint: Locate a credit card calculator online to configure this amount. Provide the link to the calculator that you used.
- Mr. and Mrs. Brown need to save 5% of their net income for retirement. Include this in your chart.
- Identify fixed and variable expenses for the Brown family.
Explanation & Answer
kindly find the attached document. In case of any question feel free to ask. Thank you
Running Head: MR. BROWN FAMILY BUDGET
1
Mr. Brown Family Budget
Name:
Institution:
Instructor:
Date:
MR. BROWN FAMILY BUDGET
2
Mr. Brown Income
Mr. Brown is a city worker earning $16.54 per hour for a 40 hour week, 52 weeks per year. He
also earns overtime at the standard overtime rate. This year he worked 500 hours overtime. He
also earns a yearly bonus of $2000 for his satisfactory performance evaluation. What as his total
combined income?
Solution
Total combined income
Earnings per year for normal working hours = 16.54 × 40 × 52 = $34,403.20
The standard overtime pay according to the United States department of Labor should be at least
one and half times the regular rates pay.
Standard regular pay = $16.54 × 1.5 = $24.81
Earnings per year for overtime = 500 × 24.81 = $12,405
Total Combined income
Total income per year = $34,403.20 + $12,405 = $46,808.20
𝐀𝐧𝐬𝐰𝐞𝐫: $𝟒𝟔, 𝟖𝟎𝟖. 𝟐𝟎 𝐩𝐞𝐫 𝐲𝐞𝐚𝐫
Mrs. Brown Income
MR. BROWN FAMILY BUDGET
3
Mrs. Brown is a social worker with a salary of $26000 per year. She also works 10 hours per
week part-time on weekends at a retail store in the mall an hourly rate of $7.50 and a
commission of 10% of sales. Her yearly sales were $25,000. What is her total combined income?
Solution
Total income = salary + part time income
Part time income = Part time salary + commission
Part time salary = $7.5 × 10 × 52 = $3,900
commission = $25,000 ×
10
= $2,500
100
Part time income = 3900 + 2500 = $6,400
Total income = $26,000 + 6,400 = $32,400
𝐀𝐧𝐬𝐰𝐞𝐫: $𝟑𝟐, 𝟒𝟎𝟎 𝐩𝐞𝐫 �...